Gulf Keystone Petroleum Limited · LSE:GKP

Gulf Keystone Petroleum — Gulf Keystone Pet Ord New — FY2022 Earnings Presentation

24 slides from Gulf Keystone Petroleum's earnings presentation, Mar 23, 2023

  1. Slide 1: 2022 Full Year Results

    2022 Full Year Results 23 March 2023

  2. Slide 2: Disclaimer

    Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any

  3. Slide 3: GKP's clear strategy

    GKP’s clear strategy Investment in Sustainable Robust balance profitable shareholder sheet and prudent production growth returns liquidity levels 3

  4. Slide 4: 2022 operational & financial highlights

    2022 operational & financial highlights Lost Time Incidents Strong  Rigorous focus on safety operational &  Record profitability & cash flow 0 financial  2022 CPR confirms significant Free cash flow performance reserves base & growth potential $266m Gross average production Investment in  Execut

  5. Slide 5: 2022 sustainability highlights

    2022 sustainability highlights Environment Social Governance  Disclosures fully  $515m revenues net  Robust corporate consistent with TCFD(1) generated for KRG(2) governance and recommendations  Almost 350 Kurdistan business ethics  Progressed Gas nationals in workforce  100% Code of Business

  6. Slide 6: Operational Review

    Operational Review

  7. Slide 7: Shaikan offers significant potential for growth & returns

    Shaikan offers significant potential for growth & returns 2022 CPR confirms large reserves & resources, with >117 MMstb produced to date Shaikan Field Reserves & Resources (Gross) Shaikan gross 2P reserves reconciliation (31-Dec-22) (2022 CPR vs 2020 CPR) Jurassic Triassic Cretaceous 900 Total 2C: T

  8. Slide 8: Increased activity in 2022 laid foundations for future growth

    Increased activity in 2022 laid foundations for future growth Commenced execution of FDP Jurassic scope Drilling new wells Production facility expansion Well workover programme & well pad prep Net Capex: $115 million (in line with 2022 guidance) $63 million $36 million $16 million  Drilled SH-15 &

  9. Slide 9: 2022 production in line with guidance

    2022 production in line with guidance Strong production momentum into 2023 leveraging recent investments Gross average production (‘000 bopd) 2022 average: 44.2 2023 YTD average: 48.9(1) SH-13 & SH-14 producing SH-15 SH-17 55,000 bopd SH-12 shut-in online online milestone SH-12 Isolated ESP SH-16 Ea

  10. Slide 10: 2023 work programme

    2023 work programme Capital guidance dependent on KRG payment timing  Flexible programme targeting profitable production growth  With further clarity around KRG payments, consider drilling beyond SH-18  Continued payment delays could lead to capital reductions Current wells Well drilling Faciliti

  11. Slide 11: Transitioning to increased investment in profitable growth

    Transitioning to increased investment in profitable growth Investment predicated on timely KRG payments and robust oil prices Shaikan Field Development Plan Our approach Jurassic reservoir To 85,000-95,000  Focusing on shareholder expansion value & licence to operate  Capitalise on growth potentia

  12. Slide 12: Financial Review

    Financial Review

  13. Slide 13: Financial performance highlights

    Financial performance highlights Delivering profitable growth and shareholder returns Adjusted EBITDA ($m) 359 Profit/(loss) after tax ($m) 266 165 223 80 150 123 44 57 (47) 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Shareholder distributions ($m) Net Capex ($m) 115 Dividends 90 Share buyback

  14. Slide 14: Record profitability and cash generation

    Record profitability and cash generation Free cash flow more than doubled $m Free cash flow: $266 million  61% increase in Adjusted EBITDA driven by higher oil price and production  $115 million investment in execution of FDP Jurassic scope  Record $215 million dividend payments to shareholders 

  15. Slide 15: Operating costs & other G&A

    Operating costs & other G&A Rigorous focus on cost control $/bbl ’000 $m ’000 Operating costs(1) bopd Other G&A expenses(2) bopd 20 46-52 55 20 55 50 15.5 15.7 50 15 15 13.6 45 12.3 12.2 45 40 7.3 9.1 4.1 40 10 10 5.0 5.2 35 35 3.9 30 5 30 5 3.2 3.0-3.4 9.5 2.6 2.7 8.2 7.3 7.0 25 6.6 25 0 20 0 20 20

  16. Slide 16: Crude oil sales & payments

    Crude oil sales & payments Continuing to engage with KRG & MNR regarding payment delays & pricing  $450 million net received from KRG in 2022(1) for oil sales and arrears  Aug-22 & Sep-22 payments received in 2023; Oct-22 to Dec-22 payments overdue  Impact on Shaikan discount to Brent from new pr

  17. Slide 17: Disciplined financial framework underpins shareholder value

    Disciplined financial framework underpins shareholder value Balancing growth, distributions & liquidity levels Top quartile five year total shareholder return(1)  Dividend policy: 382% VAALCO  Ordinary dividend of at least $25 million per 249% Serica annum 182% Energean  Distribution of excess ca

  18. Slide 18: Robust balance sheet & prudent liquidity

    Robust balance sheet & prudent liquidity Free cash flow ($m) Net cash balance(1) ($m) 266 Net cash $100m bond 119 119 91 70 138 48 122 (100) (100) (100) (26) (23) 2018 2019 2020 2021 2022 2019 2020 2021 2022 22-Mar-23  Strategic focus on:  Funding investment in Shaikan Field and shareholder return

  19. Slide 19: Outlook

    Outlook

  20. Slide 20: Outlook

    Outlook Focused on continued delivery against clear strategy Investment in  Transitioning to increased Jurassic profitable investments with timely KRG payments production  Progressing towards FDP approval growth  Targeting start-up of SH-18 in Q2 2023  $25 million ordinary dividend declared Sust

  21. Slide 21: Appendix

    Appendix

  22. Slide 22: Key historical financials

    Key historical financials FY FY FY FY FY 2022 2021 2020​ 2019 2018 Gross production (bopd) 44,202 43,440 36,625​ 32,883 31,563 Dated Brent ($/bbl)(1) 101.4 70.8 42.0​ 64.6 71.3 Realised price ($/bbl) 74.1 49.7 20.9​ 42.9 49.0 Discount to Brent ($/bbl) 27.2 21.2 21.1​ 21.7 22.3 Revenue ($m) 460.1 301

  23. Slide 23: Shaikan Field fiscal terms

    Shaikan Field fiscal terms As at 31-Dec-22 Shaikan Field fiscal take waterfall Calculating GKP entitlement GROSS REVENUE A PRE-ROYALTY B Stage % Notes 100% Gross production x realised ROYALTY 10% Gross revenue pre-royalty 100 price (Dated Brent less quality A discount & transport costs) C GROSS REVE

  24. Slide 24: Thank you

    Thank you More resources are available at: www.gulfkeystone.com 24

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